Pre-contract with a prefabricated house provider?

Hello everyone,

I have been interested in building a prefabricated house for several months now and have already had discussions with various (well-known) providers. My problem is that I do not yet have a plot of land, and it is not easy to find a good plot around here. I have been watching the market through internet portals and have looked at some new development areas, but so far there has been hardly anything appealing. The prefabricated house providers assured me that they have good contacts and can access plots that are not found on the internet and can mediate these. However, for this I would have to sign a preliminary contract stating that I would then build a house with them there.

Do you have experience with such a preliminary contract? What should one pay attention to? Or do you perhaps have general tips for finding land?

Best regards & thanks in advance
Der Städter

Should you sign the preliminary contract before they even look for a property for you or, if they have one that appeals to you, before you buy it?

They only start searching (with criteria I provide) once I have signed the preliminary contract. I do not have a contract here yet, so I cannot say exactly what it looks like. However, my assumption is that such a contract is common practice, as I have experienced it that way with several providers. Nevertheless, I have concerns about being bound by it and possibly having to pay a certain amount if I do not find anything or if it is difficult to get out of such a contract. But on the other hand, I expect more success in the property search.

I would be careful with such restrictive contracts. In any case, read the entire contract several times and realize exactly what is coming your way.

In case of contract withdrawal, for example, often 10% of the house construction costs.

In any case, check the contract carefully. Often it is not a preliminary contract but a "real" contract for the house, which contains a withdrawal clause in case you do not get a plot of land. This withdrawal clause is often tied to many criteria.

How likely do you think it is that these companies will offer you a plot of land that you do not already know? In our search for land, we also had such conversations and with two providers we were shown a few plots to be brokered (without a preliminary contract). None of them was one we did not already know and had ruled out.

Also note: as a rule, real estate transfer tax is then due both on the plot of land and on the house price.

Hello city dwellers,

I always get slight toothaches with such contracts...

If you really want to go along with such a construct, please have the contract BEFORE signing checked by a specialized lawyer.

There are already various threads in this forum that deal exactly with this problem.

As already mentioned here in the thread, the property has a significant influence on the construction costs - here you are then bound to your provider for better or worse and more or less at the mercy of their price dictate. Comparison is then no longer possible.

Also, the point already mentioned here about the real estate transfer tax for the property AND house in this constellation is an important factor.

For me, such a contract would never be an option.

Have you ever looked for building gaps and contacted the owners?

There are also always forced auctions of undeveloped plots, which are announced in the corresponding directories.

Regards,

Dirk